GlaxoSmithKline Ups Its Stake in Indian Pharmaceutical Unit
GlaxoSmithKline plc (NYSE:GSK) has announced that it will up its stake in its Indian subsidiary, according to a press release issued Sunday. The company will own 75 percent of the pharmaceutical subsidiary unit after the deal, up from 50.5 percent previously. The Indian unit will remain publicly listed, the company added.
The transaction is valued at more than $1 billion. The British pharmaceutical giant said in a statement that it paid 64 billion rupees, or approximately $1.05 billion for the subsidiary.
The company offered to pay 3,100 Indian rupees per share, as part of an open offer to shareholders between February 18 and March 5; the final payment for shares sold to GlaxoSmithKline will be completed on or before March 20, 2014, the company stated in the press release.
Glaxo’s Indian unit accepted 20.61 billion shares from the shareholders at British GlaxoSmithKline, comprising approximately 23 percent of the company’s total shares outstanding.